In order to do business there, companies need to navigate a stifling environment where Chinese government officials are increasingly intolerant of companies or others who dare challenge government conduct. This hostility to criticism is likely to be on full display in the run up to the February 2022 Winter Olympic games in Beijing.
Many global businesses have significant business interests in China, reflecting the country’s rising economic power, both as a manufacturing hub and a massive market for goods and services.
Corporations need to assess more thoroughly whether elements of their operations are directly contributing to human rights violations, and if they are, reform or suspend those operations as swiftly as possible. The Chinese government continued to undermine human rights in 2021, as illustrated by its roll-back of democratic guarantees in Hong Kong and mass detention of more than one million Uyghurs in Xinjiang. Responding to Worsening Human Rights Conditions in China Due diligence laws have not been advanced in the U.S., a reflection of almost certain industry opposition. Commission is likely to adopt a long-awaited directive calling for member states to adopt mandatory due diligence laws. Similar proposals are being debated in Austria, Belgium, and Luxembourg. In 2021, Germany and Norway enacted such laws, as France had done several years earlier. Under these laws, companies are required to identify human rights risks, undertake measures to mitigate potential problems, assess the effectiveness of their prevention efforts, and publicly report on their actions. Mandates that companies exercise “due diligence” in upholding human rights principles will continue to spread, especially in Europe. Making Mandatory Corporate ‘Due Diligence’ Requirements Effective In the next year, these companies, as well as democratic governments, need to devote time and resources to make this commitment a reality. These companies have committed to challenge overly broad government access requests and to work collectively to reforms laws in countries where legal privacy protections are inadequate. Acknowledging this potential harm, Microsoft, Google, Amazon, and five other cloud-services companies collectively published a set of principles they vowed to follow in responding to data demands by governments around the world. While governments have legitimate law enforcement and national security interests, there is a danger that officials, especially in autocratic countries, will abuse the ever-growing storehouses of personal data in the cloud. On another front, companies that provide cloud computing services will come under increased pressure to protect user privacy under international human rights law. Invigorating the FTC, if done judiciously so that regulators hold companies to their promises and demand greater transparency, without making decision about content, would provide a strong foundation for regulators to keep pace with changes in the swiftly evolving tech industry. Working with colleagues at the Harvard Kennedy School, among others, the NYU Stern Center for Business and Human Rights made this idea the centerpiece of recommendations to the Biden Administration and lawmakers which we released last March. One way Congress could address this problem is to empower the Federal Trade Commission to use its consumer protection authority to conduct more vigorous oversight. Congress is considering dozens of bills meant to hold social media platforms accountable, it is far less clear that American legislators will overcome partisan differences - amplified by online vitriol - to pass actual reform. The prospects for meaningful action have improved in recent months as a result of the revelations by Facebook whistleblower Frances Haugen, who leaked thousands of pages of internal documents, sparking intense media coverage and renewed calls for some kind of regulation. Mounting frustration over the role that the social media industry plays in stoking polarization and spreading falsehoods about elections and public health will move the European Union closer to enactment of new regulations meant to rein in how Meta (formerly Facebook), YouTube, Twitter and other global tech companies operate.
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